Multifamily investors in Phoenix shouldn’t overlook tertiary markets

For multifamily developers and investors in Phoenix, overlooked urban locations can harbor hidden goldmines. 

Demand for rental housing in Phoenix is high and despite the record number of multifamily projects currently under construction in the West Valley, supply remains low. While some areas of the region may seem to be brimming with rental properties, there remain specific neighborhoods in the city and its tertiary markets that offer an abundance of rental market opportunities.

For example, the Central Corridor was transformed into a dynamic location after the Valley Metro light-rail system expansion. Arizona State University (ASU) has begun to expand into downtown, an area that is beginning to gentrify.

In the meantime, a number of underutilized office buildings in Phoenix many of the office buildings are being repurposed while entertainment and dining venues are continually expanding.

Tempe Mill Avenue Bridge

The West Valley City of Scottsdale has a long-standing reputation for offering desirable lifestyle options for everyone from millennials to retirees, and a solid job market.

Nearby Tempe, home to ASU, is another area with plenty of room for rental housing opportunities.

Long-term returns on rental properties in these areas seem promising, and without the benefit of a crystal ball, there are no indicators to suggest a downturn. The Phoenix area apartment industry is eight years into a recovery cycle, and few developers predicted the enormity of the millennial tidal wave, which continues to amaze.

Phoenix’s strong economy adds to the region’s promising rental market outlook.
Equal Housing Opportunity






Phoenix multifamily markets